Chapter 2 Financial Planning Exercise 6 Calculating present and future values Use future or present value techniques to solve the following problems. a. If you inherited $45,000 today and invested all of it in a security that paid a 6 percent rate of return, how much would you have in 15 years? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. Calculate your answer based on the financial calculator. b. If the average new home costs $265,000 today, how much will it cost in 9 years if the price increases by 5 percent each year? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $ Calculate your answer based on the financial calculator. $ c. You forecast that in 10 years it will cost $245,000 to provide your child a 4-year college education. Will you have enough if you take $83,000 today and invest it for the next 10 years at 8 percent? Round the answer to the nearest cent. Round FV-factor and FVA-factors to three decimal places. -Select-, you will have approximately -Select-than your estimate of $245,000. d. If you can earn percent, how much will you have to save each year if you want to retire in 40 years with $2 million? Round the answer to the nearest cent. Round FVA-factor to three decimal places. Calculate your answer based on the FVA-factor. Calculate your answer based on the financial calculator. $